The ICAP-owned EBS platform is expected to become a global electronic trading venue and source of liquidity for trading platinum and palladium, building on its reputation for e-trading gold and silver.
Platinum will be traded on EBS against the US dollar as XPT/USD and palladium as XPD/USD. Both will be traded as spot unallocated 99.95% purity, on Loco Zurich with minimum tradable amounts of 500 ozs, incremented in units of 500 oz.
Market interest has driven electronic trading in precious metals on the EBS platform up 85% during 2006 on the EBS platform and the pattern is continuing into 2007. EBS overall average daily volumes are USD 145 billion.
Members of global metals exchanges will also be eligible to join the trading community on EBS by building credit relationships to trade directly, or through leased credit from an EBS Prime bank.
The ICAP-owned platform has recently added an API-based trading capability for precious metals which has enabled algorithmic or âblack boxâ trading for banks and non-banks including hedge funds and added incremental liquidity to the market.
Enhanced technology, including prime brokerage relationships facilitated through EBS, has brought dozens of new precious metals trading organisations from both emerging and developed markets to the FX market, from across Continental Europe, North America, Latin America and Asia Pacific.
Darryl Hooker, precious metals manager, EBS, said: âWeâve seen a net increase in the number of counterparties e-trading precious metals on EBS and are responding to their needs to access the same liquidity and pricing in both platinum and palladium.
âPrecious metals traders universally regard price and liquidity as being of paramount importance and we offer single screen access to global counterparties and exceptional liquidity, so they can watch and trade the major global currencies on the same screen.â
EBS introduced e-trading in spot precious metals in July 2000 and remains the leading electronic broker in spot gold and silver through the Loco London market.
Traders using EBS gain liquidity and price depth, together with certainty of trade execution and global access to global counterparties and an orderly market. The EBS system was designed for traders, by traders with a user-friendly screen and easy-to-use keypad.